Bitcoin funding rate up to July’s high on dormant crypto market
Crypto analysis agency Santiment continues to provide a variety of interesting on-chain stats. Thus, according to the latest dataToday, July 4th and US Independence Day, there has been a massive increase in the number of Bitcoin (BTC) long positions on exchanges. This signal is traditionally seen as a warning of the bullish liquidation of the bears. Following the formation of a large number of long positions, the average funding rate for BTC perpetual futures has multiplied in recent days and now stands at 0.0033%.
At the same time, increased interest and corresponding bets were observed to a greater extent only on Bitcoin, as altcoins on the festive day receded into the background.
“Smart” money acts calmly and carefully
another interesting Overview shared by Santiment is that the largest buys by Bitcoin whales only occur after extremely small price moves, literally upwards of $100-$200, which keeps prices dormant. That said, after each spike in transactions over $100,000 or over $1 million, the price of Bitcoin has consistently fallen.
Maybe the optimism on the market is due to the holiday mood of investors, but one should be cautious when applying new information that comes to light. Bitcoin’s current position seems very tempting to buy, which, on the one hand, is exactly what the whales are doing. But don’t forget that we are just getting into the capitulation/accumulation phase, and it would not be surprising if the crypto market makes an unexpected 10% squeeze down from these levels, or the same whales would close their positions into you, having previously accelerated the price hike and then buying back your liquidations.